16 May 2019
Landlords and letting agents are being urged to prepare for a significant increase in tenant activity from the start of next month.
No Letting Go believes that many tenants will be looking to move after the Tenant Fees Act officially becomes law on June 1 in order to avoid paying upfront fees and benefitting from capped security and holding deposits.
The inventory provider’s prediction follows on from recent research from The Deposit Protection Service (DPS) which suggested that tenants could be delaying moves between rental properties until the ban of tenant fees comes into play next month.
The study found that rents dropped during the first quarter of 2019, with the average rent across the country during the first three months of the year falling to £757 per calendar month, down £14, or 1.9%, from the corresponding period last year.
The DPS said that the marginal decline in rents is largely owed to a range of economic factors alongside a period of ‘tenant inactivity’ ahead of the fees ban.
Nick Lyons, CEO and founder of No Letting Go, said: “It’s no surprise to see shrewd tenants delaying moves until after the fees ban and deposit caps are introduced on June 1,” says Nick Lyons, CEO and Founder of No Letting Go.
“The upfront cost of moving between rental homes can be high – particularly in London and the South East – so renters will do anything they can to keep costs down, even if that means putting their move on hold for a few months.”
He added: Tenants are likely to have continued searching for properties over the last few months and will be keen to push their moves through as quickly as possible so they can be settled in their new property for the majority of the summer months.”
No Letting Go also reminds landlords that when the five-week deposit cap comes into force, the presence of an independently compiled inventory will become even more valuable towards protecting their investment.
Lyons continued: “Inventory reports confirm the condition of a rental property at the beginning and end of a tenancy. The presence of this document provides landlords with the evidence to make fair deductions for damage and lost items.
“With the fees ban likely to reduce average deposits in some areas, it’s vital that landlords have peace of mind that their property is protected by an inventory that can support them in the event they need to make deposit deductions.”